Investors from smaller towns are slowly investing albeit incrementally in mutual funds (MF). AMFI data shows that in the share of retail investors in mutual funds, those who invested from beyond 30 cities (B30 in industry parlance) grew to 36 percent in June 2021 as against 32 percent a year before. What has been holding these investors back? Typically, small-town investors prefer less-risky investments and those that give some sort of assured income. Hence, they prefer bank fixed deposits and postal savings. Lack of awareness and low distribution reach also lead to lower penetration. But things are changing, as apart from a financial incentive, fund houses are increasing their reach in smaller towns.